Kaito AI, an AI-powered InfoFi platform, has rolled out its much-anticipated KAITO token airdrop. Promised as a groundbreaking move in tokenizing social media interaction through its “Yaps” system, the event generated significant buzz but fell short of expectations when the tokenomics were unveiled only an hour before the claiming period began.

A dramatic market reaction ensued, with initial bearish sentiment quickly giving way to a notable recovery. Kaito’s transition from excitement to a more realistic outlook provides a compelling view of the erratic nature of cryptocurrency launches, driven by a community-centric approach and an ambitious goal.

Kaito AI Tokenomics Dilemma: Community Discontent Triggers Sell-Off

Image The announcement of Kaito’s tokenomics disappointed its followers. With 25% of the total 1 billion KAITO tokens designated for the team and a mere 10% airdropped to early supporters, many in the community felt misled by a project that claims to emphasize participant involvement.

As an InfoFi token reliant on information and community engagement, this distribution appeared ill-aligned with expectations. Users on social media expressed their discontent, with one remarking, “10% airdrop was on the lower end of my estimation.”

Alex Svanevik, CEO of Nansen AI, further escalated the situation by sharing a leaderboard that highlighted the largest sellers. Well-known influencers quickly offloaded their Kaito tokens in sizeable transactions, pushing the price down to $0.85—resulting in an approximate market cap of $210 million.

This dip was perceived as a drastic undervaluation for a project that had been a focal point in cryptocurrency discussions, highlighting a disconnect between Kaito’s aspirations and its initial token allocation.

KAITO Airdrop: WHO SOLD?
ANSEM: received $230K KAITO – SOLD 100%
MERT: received $340K KAITO – SOLD 80%
ANTHONY SASSANO: received $185K KAITO – SOLD 100%
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— Arkham @arkham February 20, 2025

KAITO Price Overview: Recovery After the Initial Storm

Image Despite the initial upheaval, Kaito has made a swift recovery in market performance. The price currently sits at $1.7 per token, resulting in a market cap of roughly $410 million. This rebound indicates potential strength in the project’s fundamentals.

Observers remarked on social media that the price chart “looks good for more, ” speculating that the limited float and AI-inspired narrative could further drive the price upward.

This rise implies that while the initial tokenomics led to an immediate sell-off, Kaito’s vision as a pioneer in InfoFi, and its commitment to rewarding quality content creation, still resonates with traders and advocates.

As only 26.8% of the airdrop has been claimed thus far, the remaining 73.2% of unclaimed tokens could create further market fluctuations. However, for the moment, it appears Kaito has weathered its most critical early hours.

The narrative surrounding Kaito is still unfolding, and the initial phases of its launch have illuminated both the highs and lows of prominent cryptocurrency introductions. The project’s capability to maintain this momentum will be tested, but its resilience from a weak debut has rekindled interest in its InfoFi innovation.